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Question By
Bucs2016

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8 People Helped
First Premier charge off
I have a CO with a last payment in May 2011. First National Collection Bureau sent me a letter offering to "satisfy in full" the account if I make a payment of $226 (which I wouldn't mind doing). When speaking to a supervisor he said if I pay then FP will not report any derogatory information other than charge off. No late payments or over balance details. I know this should fall off in June 2018 but I'd hate for it to keep negatively impacting my credit score. Plus I plan on buying a townhouse next year and from what I hear most banks won't approve with an unsatisfied collection reporting. My question is a.)will the 7 years start over if I pay? b.)will FNCB appear on my report all of a sudden? C.) does this letter protect me against FP not changing the reporting status? Any help will be greatly appreciated. Thanks

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Top Contributor
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35 People Helped

As far as I know, any payment activity resets the 7-year clock. A charged off account is just as bad as a collection account. A paid in full collection account isn't any better that a non-paid collection account, of course unless you're looking to buy a home. You might consider speaking with a loan officer for their guidance. Other options include working with a company like White, Jacobs & Associates (after care consideration and research, of course) or working with NACA to determine eligibility for their mortgage product. 

Good luck and happy credit building! 

Top Contributor
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1136 People Helped

The other answer already given is INCORRECT. You will not restart the seven year reporting period by paying this. The DOFD (date of first delinquency) on the original account is the start of the seven years and nothing changes that. Sometimes the "statute of limitations" can be reset if you enter a payment agreement and then fail to pay, BUT that is something entirely different, that has to do with how long you can be sued for a debt in your state.

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I am surprised that the debt collector isn't reporting on your reports already. So if you don't pay, what is to stop them from placing the account on your reports. Since you are considering going for a mortgage next year, I would go ahead and pay this and hope for the best that the collection account isn't added to your reports. I would guess that if you don't pay it the chances of the collection account hitting your reports will be MUCH greater.

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Reply by
Catrun

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35 People Helped

Wow. My sincerest apologies for a completely INCORRECT answer. I'm certain you're always right! 

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